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With all the efforts being made to ensure interoperability among electronic devices, the wireless chipset segment can be a significant revenue generator for the home networking chipset market. To alleviate customer apprehensions about the gradual obsolescence of technology, it is crucial for vendors to ensure interoperability among different wireless local area network (WLAN) products of various vendors.

New analysis from Frost & Sullivan, (semiconductors.frost.com), World Home Networking Chipset Market, reveals that the market achieved revenues worth $2,589 million in 2004 and projects to reach $6,652 million in 2009.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the World Home Networking Chipset Market, then send an e-mail to Tori Foster, Corporate Communications, at tori.foster[.]frost.com with your full name, company name, title, telephone number, fax number, and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.

By following a standard of interoperability, vendors will not only be able to ease buyer’s reluctance to invest in a new product, but will also experience efficiency gains.

“For direct sequence spread spectrum (DSSS) WLAN products, the Wireless Ethernet Compatibility Alliance (WECA) tests and certifies them as being interoperable,” says Frost & Sullivan Research Analyst S. Nagarajan. “Once the products have passed testing, they can then carry the Wi-Fi label that identifies them as interoperable with other wireless fidelity (Wi-Fi) branded DSSS products from manufacturers around the world.”

Moreover, once standards are agreed upon, the components will become cheaper as many vendors incorporate them in their products. Apart from the benefit of saving competitors the hassle of devoting resources to their own proprietary solutions, standardization also lowers entry barriers.

With increased competition, vendors are expected to offer lower prices through economies of scale and generate greater awareness of the technology. Although hardware vendors in the retail channels will have to contend with retailers’ Market Development Funds, co-op marketing fees, intense competition, and frequent price wars, the rewards could be substantial.

Some advantages of participating in this market include considerable brand exposure, significant sales volume and the option to use the retail channel to move beyond the consumer market into the enterprise markets.

Other than the increasing need for wireless connectivity, another factor that is likely to drive the growth of the home networking chipset market is the popularity of voice over Internet protocol (VoIP). The market stands to gain from the mounting interest shown by both the cable and digital subscriber line (DSL) service providers in offering VoIP.

Using the Internet to send voice data instead of the traditional telephone system saves VoIP providers a huge amount of money. Simultaneously, the home networking chipset service providers can develop new revenue streams and gain a competitive edge by providing additional voice lines.

“However, the use of the Internet to transport VoIP results in significant service degradation because IP data packets reach their destination with some jitter and at different times through several networks,” notes Nagarajan. “Service providers can offer better results when a private network is managed by an enterprise or by using an Internet telephony service provider (ITSP).”

World Home Networking Chipset Market is part of the 9952 subscription. The study is segmented into phoneline, powerline and wireless chipsets. The research service also discusses the prevailing industry challenges and gives strategic recommendations to overcome them. The study enables companies to align their positioning strategies to benefit from the changing market conditions. Executive summaries and analyst interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.

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